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Mgt Case Study 3

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Submitted By maxrchakir
Words 350
Pages 2
Introduction :
A three star hotel located in china , considered bringing foreign experts to upgrade it into a five star hotel. Did the strangers make any new friends ? however , they applied some effort.
Background :
The surrounding economy was on a slow incline, yet the RDH ignored any revenue or reputation decline along with avoiding new activities. They were aware but unconcerned about producing high profits (Grainger, 2008).
Problem :
Compromising in relationships, between people and between businesses forms a stronger Guanxi connection, which the new GM didn't value . Cui Fang , told the GM (As cited in Grainger,S.(2008) ) "if he refused the offer he would be effectively excluding HI from any future bookings..."(Para.18). Fang then left taking with him plenty of profitable friends of the business (Grainger, 2008).
Opportunity :
As one staff stated (As cited in Grainger,S.(2008) ) "once friendly and supportive atmosphere no longer existed"(Para.30).Employees and managers could've used their Guanxi to benefit the organization, if only they felt valued enough.
Recommendation :
A saying in china ( as cited in Dou & Li, (2013) ) " once stranger, twice acquaintance, while thrice friend " (P.904),which is crystal clear. It could've been the best combination of foreign international experts and local Guanxi relationships , to form a highly competitive market. Yet the HI believed their expertise is sufficient.Gunaxi allows a member to offer a favor to a business or another individual that will eventually repay back the favor. Guanxi presents doors of trading benefits (Tsang, 1998).
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Key words :
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GM - General manager
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HI - Hotel International
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RDH - Roaring Dragon Hotel
References :
Grainger, S. (2008). Roaring Dragon Hotel. Richard Ivey School of Business (908M04), 1-7.
Dou, J., & Li, S. (2013). The succession process in chinese family firms: A guanxi perspective. Asia Pacific Journal of Management , 30 (3), 893-917.Retrieved from Business Source Complete.DOI: 10.1007/s10490-012-9287-7
Tsang, E. W. (1998). can guanxi be a source of sustained competitve advantage for doing business in china? .Academy of Management Eexcutive , 12 (2), 65-73.Retrieved from Business Source complete.DOI : 10.5465/AME.1998.650517

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